MODELS OF BANKING INSTABILITY: A PARTIAL REVIEW OF THE LITERATURE

Abstract. This paper critically examines the theoretical literature on banking instability that has followed Diamond and Dybvig (1983). It explores the extent to which it (a) explains banking instability within a theoretical context in which financial intermediaries improve on unintermediated markets, and (b) justifies government involvement in the financial intermediation industry. It suggests that the literature has yet to provide a satisfactory theoretical basis for banking instability as such since the intermediaries which arise from it are peculiar mutual funds that bear little resemblance to real-world banks. In addition, the paper challenges the widespread belief that this literature provides a sound foundation for government involvement in the industry. It suggests that arguments for government intervention are open to objection on various grounds, the most important one being that they are inconsistent with the existence of properly motivated financial intermediation in these models.     

The cornerstones of competitive advantage: A resource-based view

This paper elucidates the underlying economics of the resource-based view of competitive advantage and integrates existing perspectives into a parsimonious model of resources and firm performance. The essence of this model is that four conditions underlie sustained competitive advantage, all of which must be met. These include superior resources (heterogeneity within an industry), ex post limits to competition, imperfect resource mobility, and ex ante limits to competition. In the concluding section, applications of the model for both single business strategy and corporate strategy are discussed.     

The Relevance of Varieties of Accounting Information: A U.S.A. Survey

Diverse kinds of financial information have been claimed to be relevant, for one purpose or another. A survey by mailed questionnaire over seven professional groups in five large U.S. cities sought to discover whether certain valuation rules yielded serviceable amounts in specific problem settings or in representations of financial position and income. Most of the questions were posed in the form of simple problem situations. To questions relating to wealth, spending power and financial position, large majority responses rejected conventional accounting values and endorsed market selling prices. To questions on income calculation, majorities favouring use of the same principle were smaller. Cross-tabulations of answers on financial position and income showed substantial inconsistencies; a hypothetical explanation is given. A comparison is given of responses to some questions in similar surveys in Australia and South Africa.     

More on the Discounting of Residual Income Streams

The purpose of this paper is to take the conclusions reached by Peasnell (1981, 1982) and Kay (1976) and show that the use of discounted residual incomes for project evaluation purposes requires the prior appraisal on a cash flow basis. The use of residual income at the investment planning and subsequently at the accounting stages is also evaluated.     

Anatomy of a financial crisis

This paper provides an asymmetric information framework for understanding the nature of financial crises. It provides the following precise definition of a financial crisis: A financial crisis is a disruption to financial markets in which adverse selection and moral hazard problems become much worse, so that financial markets are unable to efficiently channel funds to those who have the most productive investment opportunities. As a result, a financial crisis can drive the economy away from an equilibrium with high output in which financial markets perform well to one in which output declines sharply. The asymmetric information framework explains the patterns in the data and many features of these crises which are otherwise hard to explain. It indicates that financial crises have effects over and above those resulting from bank panics and therefore provides a rationale for an expanded lender-of-last-resort role for the central bank in which the central bank uses the discount window to provide liquidity to sectors outside of the banking system.     

浅谈农村资源管理

为引起人们重视农村资源的管理工作,本文拟就农村资源管理的内容、特点、影响因素及管理中的关键等问题作了探讨。     

Trading in strategic resources: Necessary conditions,transaction cost problems,and choice of exchange structure

The paper develops a theoretical framework for analyzing the exchange structure in the trading of imperfectly imitable and imperfectly mobile firm resources. It first explores the conditions for such resources to be gainfully traded between firms and then investigates the interconnections between barriers to imitation and impediments to trading. A major part of the paper is devoted to developing an integrative and yet parsimonious model for assessing the exchange structure between firms that are involved in the trading of strategic resources in the face of signifcant transaction cost problems. The model is applied in the last part of the paper to the analysis of the choice between acquisitions and collaborative ventures.     

浅析我国石油进出口贸易

我国石油从贫油到自给,从自给到净出口国,从净出口国到净进口国,从净进口国到对外依存度超过了50%,表明石油的大量消耗已成为我国经济发展的"瓶颈",因此石油进出口贸易对我国保障经济稳步发展具有举足轻重的作用。本文初步分析了我国石油进出口贸易的发展格局,初步提出了我国石油进出口贸易发展策略和建议。     

后金融危机时代农民工权益贫困化与出路的深层次思考

后金融危机时代农民工权益贫困化问题凸现,其实质是合法权益实现的贫困化。用权力行为的公正维护农民工合法财产权益,体现制度优越性;用劳动的正义捍卫体面劳动,实现劳动权益的合法性;用人权的神圣捍卫农民工自我发展权,体现和谐社会"以人为本"的价值理念。这需要在机制改革、制度建设与政策调整上的政治共识和政治智慧。     

关于浙江“块状经济”发展的金融支持思考

"块状经济"是破解"浙江现象"的一把钥匙。但在美国金融危机引起国际市场需求疲软和国内市场需求不足的背景下,资金瓶颈已然成为"块状经济"发展的核心"瓶颈"。从金融支持"块状经济"发展的视角,探究其发展的金融瓶颈,探索推动其发展的金融支持策略,对"块状经济"的转型升级及持续发展具有现实意义。